What are the pros of using a dispatch company with their authority vs doing it all yourself?

I have my own truck and trailer and I’m leased onto a carrier’s authority. For me, if I’m giving someone a percentage then they better have direct freight and weekly pay. I wouldn’t want to give up a percentage and have then just grabbing loads off a load board.

 

I’m still using Merge. I’m satisfied with them. I’m putting my other two trucks under my authority within the next two weeks as well. You can give them as much control as you want. I work closely with my agent so they know what lanes I want and my strategy. I give them ranges on the rates I expect in certain areas. It’s nice when I don’t have time to keep checking the board, fill out packets, sign rate cons, they can do all that while I’m driving, sleeping, inside a warehouse, under ground in a cave, etc. It saves me a lot of time. Merge also uses FreightWaves data.
There is a new player I’m looking at using, SmartHop. They are a dispatch service but use algorithms and automation to find the best loads and lanes. They’re system literally searches every load posting in the US and compares it with data from FreightWaves. The algorithm spits out what loads are best to take, based on market conditions, the human dispatcher then begins to negotiate and bounce options off you. Their system is focused on all 48 States and willing to be on the road longer. I spoke with them and they said it is an option to limit the running area. They charge 3% of revenue but also provide a lot more services than a typical dispatch service. They have after hours available if you have multiple drivers to handle issues that come up. They are really like a driver manager/load planner outsource while Merge is more like a traditional dispatch service, but with more data than most.
I’m planning on letting SmartHop run my truck that I’m driving for a couple weeks and see how they work exactly, they have a very interesting concept.

 

Did you end up trying Smarthop? If so , how did it work out?

 

How does it work when you use a dispatch service in regards to getting paid and them getting paid? Do they act as a factor? Or do they do the billing but it comes to you and then you pay them? I’d think they need some sort of control over payment to ensure they get their money.

Thanks.

 

Smarthop offers factoring but that costs extra.
They want 3% for their normal services and send you a bill each week.
You only are charged for the loads you got from them.
First week is free, you keep all the money.
I am guessing they dont let you get that deep into them before they stop sending you loads.
There is no contract either.
Seems like they are pretty well incentivized to do right by you or you can just walk away.

 

wiht merge and smarthop you'd still run under your own authority correct, they are not a carrier

 

That is my understanding with smarthop

 

So I use a straight out dispatch company. All they do is find you loads. The gal usually has my whole weeks worth of loads for me ready to go on Monday morning. It is all o/o with their own authority. No company drivers at all. Then we have a separate factoring company. Pretty good setup, I like it. My wife is an accountant of sorts and does all of our books and alot of the other guys aswell.

 

No. I still use Merge, I think they’re going by Taylor Dispatch now. I do 95% of the booking. I mainly use them for back office help. Being one guy and three trucks, the little extra help is nice.